Marketing of refined products

In 2009, while domestic consumption was barely unchanged, retail sales on the Italian network (9.03 mmtonnes) were up approximately 220 ktonnes from 2008, or 2.5%, mainly due to fidelity programs, marketing and pricing initiatives, in particular “Iperself‘ sales, and the opening of new services stations that sustained a 0.9 percentage point growth in market share from 30.6% at December 31, 2008 to 31.5% at December 31,2009. Higher sales mainly regarded gasoil and LPG sales, while gasoline sales declined slightly.

At December 31, 2009, Eni’s retail network in Italy consisted of 4,474 service stations, 65 more than at December 31, 2008 (4,409 service stations), resulting from the positive balance of acquisitions/releases of lease concessions (90 units), the opening of new service stations (7 units), partly offset by the closing of service stations with low throughput (24 units) and the release of 9 service stations under highway concession. Average throughput related to gasoline and gasoil (2,482 kliters) registered an increase of 13 kliters from 2008.

In 2009, fuel sales of the Blu line – high performance and low environmental impact fuel – recorded lower prices from 2008 with the stability of sales due to marketing initiatives and fidelity programs during the year. Sales of BluDiesel and its reformulated version BluDieselTech amounted approximately to 600 ktonnes (720 mmliters), and represented 10.5% of gasoil sales on Eni’s retail network. At December 31, 2009, service stations marketing BluDiesel totalled 4,104 units (4,095 at 2008 year end) covering approximately 92% of Eni’s network. Retail sales of BluSuper amounted to 82 ktonnes (110 mmliters), in line with 2008 and covered 2.6% of gasoline sales on Eni’s retail network. At December 31, 2009, service stations marketing BluSuper totalled 2,679 units (2,631 at December 31, 2008), covering approximately 60% of Eni’s network.

“You&Agip‘, the promotional campaign, launched in March 2007 and lasting 3 years finished in 2009. As of December 31, 2009, the number of customers that actively used the card in the year amounted to approximately 5.4 million. The average number of cards active each month was over 3.1 million. Volumes of fuel marketed under this initiative represented over 45% of total volumes marketed on Eni’s service stations joining the programme, and 44% of overall volumes marketed on Eni’s network. In February 2010 Eni launched the new promotional campaign “you&eni‘ lasting 3 years until January 31, 2013.

Multicard Routex

The Routex Multicard paying card is addressed to professional transport (transporters and car fleets) and provides users with services ranging from delayed payment to discounts on fuel prices, centralized invoicing, reports on consumption and distances covered, in addition to toll paying in highways. This initiative aims at gaining loyalty from customers across Europe as the card can be used in Italy on all Agip branded service stations and, in its international version, on the service stations of all members of the Routex consortium (Aral, BP, OMV and Statoil). In 2009 volumes bought with this card in Agip service stations represented approximately 16.6% of total sales in Italy and 11.4% in Europe.

Eni continued the development of its non oil retail activities aimed at promoting the development of its network in line with European standards, such as the diffusion of high-tech car care systems and services dedicated to customers. In 2009 Eni tested the results of the opening of three convenience stores jointly with GS, a new and innovative format in Italy but well established in Europe. Eni’s retail network includes about 1,050 fast food and high quality commercial outlets both on ordinary and motorway service stations with a wide range of brands such as Pans & Co, McDonald’s. Eni also boasts the largest automated car-wash network in Italy, with approximately 800 high quality and fast service facilities.
With the aim of developing and upgrading its non oil activities Eni continued opening new outlets and converting existing ones to more effective formats with the addition of 51 new outlets reaching a total of 511 units.
In 2009 sales of non oil products and services amounted to €58.6 million (€54 million in 2008); operating profit represented approximately 71% of sales (65% in 2008).
In the next four years Eni confirms its development and upgrading strategy for non oil activity by opening new units and converting existing ones to more visibile formats targeting over 1,100 bars, shops, convenience stores and washing areas, reaching a coverage of its owned service stations of nearly 68% by 2013 (about 62% at year end 2009).

Excluding the impact of the divestment of marketing activities in the Iberian Peninsula to Galp (down 0.64 mmtonnes), in 2009 retail sales of refined products marketed in the rest of Europe (2.99 mmtonnes) were down approximately 230 ktonnes from 2008, or 7.1%, mainly in Germany and Eastern Europe due to a decrease in fuel demand. At December 31, 2009, Eni’s retail network in the rest of Europe consisted of 1,512 units, a decrease of 35 units from December 31, 2008 (1,547 service stations).
The network evolution was as follows:

• 32 low throughput service stations were closed;

• negative balance of acquisitions/releases of lease concessions (32 units) with negative changes in Germany and  positive changes in Hungary;

• purchased 21 service stations, in particular in Romania; (iv) opened 8 new outlets.

Average throughput (2,461 kliters) decreased by 116 kliters from 2008.

In 2009, sales volumes on wholesale markets in Italy (9.56 mmtonnes) were down 1.59 mmtonnes from 2008, or 14.3%, reflecting mainly a decrease in demand for jet fuel, the bunkering market and fuel oil for power generation, as well as in gasoil sales due to lower industrial consumption reflecting the economic downturn.

Sales on wholesale markets in the rest of Europe (3.66 mmtonnes) decreased by approximately 280 ktonnes, or 7.1% (excluding the impact of asset divestments in the Iberian Peninsula), mainly in Germany, in the Czech Republic and Switzerland due to declining consumption in particular of gasoil for heating.

Supplies of feedstock to the petrochemical industry (1.33 mmtonnes) decreased by approximately 370 ktonnes due to declining demand. Other sales (18.61 mmtonnes) decreased by approximately 1.17 mmtonnes, or 5.9%, mainly due to lower sales volumes to trader and oil companies, as well as the reduction of volumes sold to the cargo market, also due to lower refining throughputs.